Since its launch in April 2013 more than 145,000 properties have been bought using the Help to Buy Equity Loan scheme. Five years on and the interest-free element of the loan is due to end, with homeowners potentially facing expensive fees. The Help to Buy Equity Loan scheme was aimed at helping more first-time buyers onto the housing ladder; they just needed a 5% deposit and 75% mortgage. The remaining 20% came as a loan from the government and was interest free for the first five years.

Whatever type of mortgage you have, you can talk to us to explore your options. If you bought your house with a Help to Buy Equity Loan scheme and you’re coming to the end of your five-year interest free period you’ll need to start paying a fee of 1.75% of the value of the loan, increasing each year by RPI plus 1%, unless you can pay the loan off.

If you bought your house with a Help to Buy Equity Loan scheme and you’re coming to the end of your five-year interest free period you’ll need to start paying a fee of 1.75% of the value of the loan, increasing each year by RPI plus 1%, unless you can pay the loan off.

The table below shows how the fee would work on a £40,000 Help to Buy equity loan with an estimated RPI +1% of 6%:

Start of year Interest Fee percentage Annual interest fee and management fee due Estimated monthly payment (interest fee and management fee)
6 1.75% £712 £59
7 1.86% £756 £63
8/td> 1.97% £800 £67
9 2.08% £844 £70
10 2.21% £896 £75